Arrowroot Capital Raises $177 Million for Third Fund

November 15, 2017 08:00 AM Eastern Standard Time

SANTA MONICA, Calif.--(BUSINESS WIRE)--Arrowroot Capital Management, LLC (“Arrowroot”), a software-focused
growth equity firm, announced today the closing of its third fund,
Arrowroot Capital III, L.P. (“Fund III”) with over $177 million in
limited partner and general partner commitments. The fund was
oversubscribed and closed at its fundraising cap. The firm has already
completed a number of investments throughout 2017 and expects to close
additional opportunities prior to the end of the year.

Founder & Managing Partner, Matthew Safaii, said, “We are pleased to
have brought in an impressive core of leading endowments, foundations,
consultants, pensions, alternative asset managers, and other
institutions who we look forward to working with in the months and years
ahead. Arrowroot recognizes the confidence our partners have placed in
us and will continue to work diligently to execute our strategy.”

Fund III will continue Arrowroot’s focus on providing growth capital for
healthy, recurring revenue enterprise software companies in the
lower-middle market. Arrowroot seeks to capitalize on the funding gap
between early stage venture capital and larger traditional growth equity
firms looking to make larger investments. The firm also brings
disproportionate support to their portfolio at this smaller end of the
market through their Strategic Resources Group (“SRG”) which provides
direct consulting, recruiting, and thought leadership for best practices
as they scale across Sales & Marketing, Human Capital, Technology, and
Operations.

Probitas Partners served as placement agent and Kirkland & Ellis LLP
served as legal counsel in the fund formation of Fund III.

About Arrowroot Capital

Arrowroot Capital is a growth equity firm based in Santa Monica focused
on growing and mature recurring-revenue software businesses. It seeks to
partner with management to accelerate growth and help guide the company
to its ultimate exit. Arrowroot targets equity investments in the range
of $5 million to $25 million and has the flexibility to pursue larger
opportunities. Learn more at www.arrowrootcapital.com.